Hong Kong’s Hang Seng Tech opened 2.3 percent lower on Tuesday as shares of Asia-Pacific fell after a volatile day of trading in global markets.
The technology marker in Hong Kong was dragged down by declines by Chinese companies as markets reacted to the prospect of the US Federal Reserve quickly lifting stimulus measures.
The Kuaishou video-sharing app fell more than 3 percent, the Meituan food delivery platform lost 2.1 percent and the Tencent Internet group fell 1.1 percent. Jack Ma Alibaba’s e-commerce group fell nearly 1.7 percent.
Investors were worried about speculative technology stocks that pulled markets out of last year’s coronavirus pandemic and shifted from stocks considered vulnerable to the Fed’s expected rate hike.
The gloomy start in the region included a 2.5% drop in Australia’s S&P / ASX 200 index, 2.4% in Japan’s Topix and almost 3% in South Korea’s Kospi technology.
Hong Kong’s broader index Hang Seng fell 1.5 percent after opening, falling 2.1 percent, while China’s CSI 300 index of shares in Shanghai and Shenzhen fell 1.3 percent.
The market turmoil comes after China’s cyberspace administration, the country’s Internet regulator, announced on Tuesday a month-long campaign on “clean cyberspace” targeting online abuse, “chaos” among celebrity fan groups and other issues during the holiday. the lunar new year. .
In the last year, Beijing has stepped up its efforts to control online content, which it says “pollutes the Internet” as part of a wider crackdown on the technology sector.
Andy Maynard, global head of shares at China Renaissance Investment Bank in Hong Kong, said the moves reflected nervousness from the prospect of tighter monetary policy, as well as escalating tensions between the United States and Russia over possible military action in Ukraine.
“Long – term [we are] still positive for stocks at the local level, but in the short term volatility is likely to be the trend, “he said.
“Technology is still affected by current regulatory and government-induced changes in their work landscape. It seems that Beijing is not done yet [it difficult] for the sector in the short and long term “.
In Asia, trade in 10-year US government bond yields was 1.8%, a small change. Bond yields increase as prices fall.
Traders sought more secure U.S. government debt on Monday after a sell-off that led to Wall Street’s technology-focused Nasdaq Composite fell 4.9 percent before recovering.
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